Go, Rudy. Boy, Do I Hear You.
Response to "Why The Rest of the World Hates Us"
Response to: Why the Rest of the World Hates Us by Rudy J. Cardona
Published on LatinoLA: March 22, 2009
Go Rudy. . . Boy, do I hear you.
I would propose, however, that we give Obama the benefit of the doubt because he may be our last hope. Historically, there is a strong correlation between global economic depression and global militarism. Ever since the rocket scientists over at Lehman Brothers screwed the pooch and was forced to file for BK in September of last year, and thereby provoking massive panic that resulted in the literal freezing of global credit markets overnight, I have spent no less than one hour each night, every night, searching the internet for all information I could get my hands on in an attempt to learn for myself just how we got into this terrible financial mess. What I have learned is, simply, incredible. What is really incredible is how incredibly stupid these banks and investment firms (masquerading as hedge funds) were in giving mortgages to people who could not possibly afford them. They knew that the borrowers could not possibly pay the mortgages when the "teaser rates" expired and the mortgage payments were reset to their true interest rates, but they did not care, because they were packaging this stuff up together with corporate debt securities, and the like, and were selling them on Wall Street to everyone around the world and making immense profits from them.
Another reason the entire world is pissed off at us is that we wrote them a whole lot of "checks" - in the form of mortgage backed securities that were supposedly AAA rated - which are now bouncing all over kingdom come.
Then, "greed" being what it is, the banks and other financial houses started to write insurance (aka "credit default swaps" or "CDS") to insure all this toxic mortgage paper for massive profits. I have read that a great majority of all of the national banks, insurance companies, commercial investment houses, and other institutional investors, ended up writing CDS insuring hundreds of billions of dollars of mortgage-backed securities, with assets totalling only a few billion dollars. (Hey Rudy, if you pay me a couple of hundred bucks a month, I will insure your car for you. But if it ever gets damaged, don't come to me because I do not have any money to pay to repair it).
No wonder Citigroup stock (C) was virtually a "penny stock" only a few weeks ago, with Bank of America (BAC) being down to under $4 a share only just last week.
I recently read a "white paper" that is purported to have been prepared by AIG (it looks and reads authentic) that was distributed to the honchos at the Fed and various Congressional committee members which stated that AIG can not be allowed to fail because it has $1 trillion worth of obligations, and has exposure to another $1 trillion of obligations that were incurred because AIG had "lent" out its AAA credit rating. AIG makes a very convincing argument that if it goes down the toilet, so will the entire economies of many nations - as well as, possibly, throwing the entire western global economies into a severe economic depression. I tend to believe this information since Congress has authorized bailing AIG out to the tune of about $167,000,000,000 (that's right - $167 BILLION) And what do you think China is going to do when they get stiffed to the tune of, perhaps, a "half-trillion dollars" in mortgage-backed securities that they purchased from those good folks on Wall Street? There is already a subliminal trade war going on that will only get worse as each nation tries to protect its own domestic economy by purchasing domestically produced goods.
Damn Rudy, you got me started . . . and I could go on for a very long time as I am one very pissed off taxpayer who wants to start seeing some "high level executives working for corporations that are propped up solely by taxpayer's money while still receiving million dollar bonuses for failing at their jobs and thus driving their corporations into the ground" - type heads to roll. . . and I want to see baskets upon baskets filled with heads.
I live within my means and buy only what I can truly afford and it literally makes me sick to see incompetency being rewarded with my tax dollars, on such a massive scale.
In any regard, I really enjoyed your commentary and I agree with most of your observations. Keep up the good work and keep me posted with anymore in the future.